Grasim Industries drops to 52-week low after weak Q1 results

Grasim Industries lost 3.13% to Rs 2,481.70 at 9:48 IST on BSE after consolidated net profit fell 15% to Rs 610.01 crore on 1.5% growth in net sales to Rs 6895.08 crore in Q1 June 2013 over Q1 June 2012.

The Q1 result was announced on Saturday, 3 August 2013.

Meanwhile, the S&P BSE Sensex was up 32.95 points or 0.17% at 19,196.97.

On BSE, 1,201 shares were traded in the counter as against average daily volume of 5,158 shares in the past one quarter.

The stock hit a low of Rs 2,477.75 so far during the day, which is a 52-week low for the counter. The stock hit a high of Rs 2,530.35 so far during the day. The stock had hit a 52-week high of Rs 3,511 on 17 October 2012.

The stock had underperformed the market over the past one month till 2 August 2013, declining 8.47% compared with the Sensex's 1.54% fall. The scrip had also underperformed the market in past one quarter, falling 13.38% as against Sensex's 2.9% slide.

The large-cap company has equity capital of Rs 91.80 crore. Face value per share is Rs 10.

Grasim Industries said that the performance of the company during the quarter has been satisfactory considering the prolonged subdued economic environment in India and across the world.

On future business outlook, Grasim said that given the prevailing global economic conditions, coupled with the surplus capacity in China, the viscose staple fibre (VSF) industry continues to face a challenging environment in the immediate term. In cement, the demand is expected to grow by 6% in FY 2014 due to the slowdown in GDP growth rate, the company said. It has the potential to recover to over 8% with the improvement in the economic environment, it added. Capacity expansions in VSF and cement will provide additional volumes, driving growth and further consolidate the company's leadership, Grasim said. This will enable Grasim to move forward rapidly, with the recovery in the market, the company added. Grasim said it will continue to focus on cost reduction measures, improving asset productivity to maintain its position as the lowest cost producer and expanding specialty products portfolio for sustained shareholder value creation.

Grasim Industries is a flagship company of Aditya Birla Group. Grasim's businesses comprise VSF, cement, chemicals and textiles. Its core businesses are VSF and cement.

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